Tarkett To Acquire Lexmark

August 28, 2018

PARIS — August 27, 2018 — Tarkett, a producer of flooring and sports surfaces solutions, has signed an agreement to acquire 100-percent of Lexmark Carpet Mills.

Lexmark produces high-quality carpet, primarily for the North American hospitality segment. Lexmark is a well-recognized brand among leading hospitality chains. In recent years, the company has extended its product range to address the residential market.

Headquartered in Dalton, Ga., Lexmark achieved around $120 million of sales in 2017, employs 460 people and operates one plant in the United States. Lexmark has demonstrated a strong and profitable growth model, particularly through the successful acquisition of Northwest Carpets in 2015, a manufacturer of broadloom carpet for hospitality and niche commercial applications.

“The acquisition of Lexmark will position Tarkett as one of the leaders in the hospitality segment for carpets in North America,” explained Glen Morrison, CEO, Tarkett. “We will be able to further strengthen Lexmark’s offering in this segment as they will have access to Tarkett’s broader product portfolio. We will also leverage Tarkett’s global presence to enhance Lexmark’s positioning with key accounts worldwide.”

“We are very excited to join Tarkett with whom we share the same vision and entrepreneurial values, as well as a strong commitment to servicing customers with solutions designed to meet a wide range of needs,” comments Paul Cleary, CEO of Lexmark. “Within the Tarkett group, we will be able to offer a larger choice of products to our customers and partners and provide an even stronger offering.”

While the acquisition will be immediately accretive to Group EBITDA margin, Tarkett has also identified sales and supply chain synergies with its North America carpet activities.

The transaction will be financed with an existing credit facility. After the acquisition, Tarkett expects its net consolidated debt leverage ratio to be around 2.5x EBITDA (proforma) at the end of the year.

The transaction is expected to be concluded before the end of this year, subject to regulatory approval and other customary closing conditions.